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An interview with Dave White, a water expert at Arizona State University, about what a breakthrough along the Colorado River really means

Arizona, California, and Nevada announced a deal on Monday to reduce the amount of Colorado River water they use, ahead of a bigger overhaul planned for 2026. The agreement is crucial, likely keeping the river from reaching dangerously low levels that would have put water supplies for major cities and agricultural regions at risk. But Colorado River water policy is often knotty and confusing, and it can be difficult to wrap one’s head around just what kind of impact deals like this can have.
To that end, I called up Dave White, the director of the Global Institute of Sustainability and Innovation at Arizona State University and chair of the City of Phoenix’s Water/Wastewater Rate Advisory Committee. He explained how things work now, what the deal means, and how he’d like to see things change in the future — particularly in 2026, when the current set of water allocation rules expire and are replaced. Our conversation has been edited for length and clarity.
There are more than 100 years of law policy agreements, which we collectively call the law of the river. But the most relevant is an agreement called the 2007 Interim Operating Guidelines for the Coordinated Operations of Lake Powell and Lake Mead. That’s the long name, but we typically call it the 2007 agreement.
That agreement created a set of rules that, as the name indicates, helped to guide the operations of Lake Powell and Lake Mead. And along with subsequent agreements, particularly the drought contingency plans in 2019, it has guided the management of the reservoir system on the Colorado River and set forth the allocations managing the flow to the lower basin states.
Right now we’re in the time period between when the interim guidelines were established in 2007, updated with drought contingency plans in 2019, and when we’ll hit a deadline for a new set of operating guidelines in 2026. And so all of this is trying to manage the risk from the reduced water supply on the Colorado River and to help reestablish a balance in the supply-demand equation of water in an era of megadrought, climate change, and high agricultural demand and increasing municipal demand.
The first thing that’s important for folks to realize is that this is a proposal. What was announced was essentially an agreement among the lower basin states — California, Nevada and Arizona — to propose a plan to reduce demand in those states. It will need to go through additional steps to identify more specifics, and then this proposal ultimately will need to be adopted by the seven affected states and then endorsed by the Bureau of Reclamation.
What the proposal does is lay out a framework to reduce water demand in the lower basin by about 3 million acre feet. And for context, one acre foot is about 325,000 gallons of water, or the amount of water used by two to four homes in the western United States per year. That reduction would be taken across multiple sectors: agriculture, tribal communities, and some municipal or urban users, most notably the Metropolitan Water District of California, which is the Los Angeles area.
The idea is to reduce demand through voluntary conservation. And then part of the package is compensation for some of that voluntary conservation in the form of funding from the federal government through the Inflation Reduction Act to the tune of about $1.2 billion. That is an absolutely critical part of the of the story: the Inflation Reduction Act has really enabled this breakthrough, because of the federal funding for those voluntary conservation measures.
Another critical part of the story was that recently the Bureau of Reclamation released what’s called a draft environmental impact statement, and it presented a couple of alternatives to the states for consideration. Those proposals gave us kind of a federal government’s perspective on the framework moving forward. It was essentially a classic negotiating tactic, where the Bureau of Reclamation said, “look, you states have yet to reach a consensus agreement, so we’re going to lay out a plan,” and, as is often the case, everybody was unhappy with parts of that plan.
That helped to stimulate additional negotiations and bring California, in particular, more to the table. So it’s a very important moment in time because it represents a turning point in multi-year negotiations between the states. Importantly, it lays out a path forward for a consensus agreement that is driven by the states as opposed to being imposed upon them by the federal government. So, we’re talking about a breakthrough in negotiations that led to a three-state proposal.
Well, that’s what we’re waiting to see. We don’t have all of those details yet.
Legally, the Bureau of Reclamation needs to go through this process, weigh the different alternatives, evaluate it, identify what they would call a preferred alternative, and then ultimately make a determination. But the Bureau of Reclamation has certainly indicated there’s initial support for this proposal and that the funding would be made available.
We don’t know who specifically would receive how much of that funding but we do know that it will be agriculturalists (essentially farmers and ranchers), some municipalities such as the Metropolitan Water District of California, and some Native American communities.
We are still engaged in what I would call incremental adaptation. This is adapting to the rapidly changing conditions that are presented by this 22-year-long drought, the so-called megadrought in the region. We are also adapting to the impacts of climate change. If you go back, you know, the 2007 agreement was an incremental update to deal with a very significant risk of shortage on the Colorado River system in 2000 to 2005. We had the drought contingency planning process in 2019 that was another incremental adaptation at that time that was meant to get us to 2026, when the current guidelines expire. Environmental conditions continue to rapidly change, while the demand side continues to stay high. And while we’ve made a number of efficiency gains and voluntary reductions, the river is simply over-allocated for the flow that we have seen, especially since the turn of the millennium.
So we’ve been engaging in a series of incremental adaptations. Now, there’s nothing wrong with that. That’s a very smart strategy as you move along, right? You’re incrementally adapting your policy to reflect the changing environmental and social conditions. This is another important incremental adaptation that will hopefully allow us to keep working towards the 2026 guidelines.
What I and many others argue is that we need a more transformative adaptation, we need a more significant restructuring. Now, it’s difficult to do that right now in the midst of a very short-term risk. But eventually, between now and 2026, we need to address some of the structural imbalance, or deficit, in the river. We have over-allocated the river in this era of increasing drought and climate change.
We’ve got to restructure the demand over the course of the next several years, and that’s going to require more transformational kinds of changes. But I also want to point out that’s not limited to reducing demand, right? You can do that through dramatic increases in efficiency. We can produce the same units of product, whether that be food or microchips or homes or businesses, with significantly less water.
The most effective strategy is efficiency. It’s the cheapest. It does not require significantly new infrastructure or new water augmentation. And there are lots of good stories out there, in creating more efficiencies and creating more flexible policies and more adaptability within the way that we manage water. We’ve got to sort of wring every cool new approach we can out of the system.
One that I think is really important is that the city of Phoenix and several of its regional partners in central Arizona are in the planning stages of moving towards an advanced water-purification process. What that means is it would allow the cities to pool their wastewater resources, their effluent, and then be able to treat that water through advanced water purification so we can reuse that water for municipal use. We call that direct, potable reuse of the water.
Central Arizona is incredibly efficient, we reuse about 90% of all the wastewater that we produce in the central Arizona region for power production, for urban irrigation, for agriculture, etc. But we can actually reuse that water to support households and businesses. We can then use that water again. Some of it is consumed by people, but basically cycling the water through the city as many times as possible reduces the need for new raw water.
So the current proposal that’s in the process of being developed by the City of Phoenix Water Services Department is for advanced water purification that, according to the current estimates, would produce about 60,000 gallons of water a day for City of Phoenix residents from wastewater. And so, that’s one way we can be much more efficient in recycling and reusing our water.
I do think it gets to the need for greater public understanding and then, you know, individual and collective action. In single family residential households, for example, 50% or more, on average, of the water use is outside the home for things like residential landscaping and swimming pools. In the Phoenix area, we’ve seen a really significant trend in reducing water demand inside single family homes, thanks to technologies like low water-use toilets and more efficient washing machines and dishwashers and so on. The next frontier is getting more progressive with the way we manage residential landscaping water. And that's something that every individual household can do.
The Southern Nevada Water Authority, the Las Vegas Regional Authority, has been really at the forefront of these kinds of strategies with turf buyback programs, incentivizing homeowners, and creating all sorts of both incentives and policies to reduce that outdoor residential demand. And that’s something where individual households can be empowered.
No, I really don’t. It’s about a sort of risk management in the short term, and then crafting new policy approaches and new management strategies over the long term. So I don’t think these get in the way of each other. The 2019 agreement essentially bought us some time, and this round of proposals and anticipated agreements will continue to buy us some time.
Do I think we need more adaptation, and more significant changes? Absolutely. But I would never criticize these incremental plans, because they’re absolutely necessary to manage short-term risk.
Without these actions, there was a plausible scenario where levels in the reservoirs could drop below the minimum power pool, meaning we wouldn’t be able to create power out of the Hoover Dam. In [the Bureau of Reclamation’s] 24-month studies, we began to see scenarios in which the lake levels dropped below the intakes, meaning we wouldn’t be able to deliver Colorado River water whatsoever to the states.
When you start to see these highly undesirable scenarios where you lose the ability to produce power, you potentially even lose the ability to deliver any water at all from the Colorado system to Arizona, California, or Nevada, you know you’ve got to act and engage in short-term risk management.
The risk that we’ve always seen is that you get some relief from the kind of very strong winter precipitation in the Rocky Mountains and in California that we had this year. But as a colleague says, we cannot let one good winter take the pressure off. I never want to root against good news, and the winter precipitation and the new proposal and potential agreements are good news. But you got to keep the pressure on and keep the emphasis on the long-term strategies.
[Laughs] Yes.
Well, I think you can look at it both ways. Yes, there was the intention that the 2019 plans would get us to 2026. Turns out the 2019 plans got us through 2022. That’s just the reality we’re in. Do I wish the 2019 plans would have gotten us to 2026? Yes. But without the 2019 plans, we would have been at risk of minimum power pool levels even earlier.
I was hopeful the 2007 plans would get us to 2026. But the reality is that the climate is changing, the drought has just been incredibly persistent. I mean, we now know from looking at reconstructions of the past climate that this 22-year period is the driest period in our region in the last 800 years for certain, and very likely in the last 1,200 years. That’s an exceptional period of drought. And so, by some measures, you know, it’s pretty remarkable what the water management community has done to manage the risk without significant disruption to the region. So in some ways, it’s a success story.
The single most important thing everyone recognizes is that we really need to chart a new path forward for agriculture. Particularly for agriculture in the lower basin, and even more specifically for non-food forage crops in the lower basin.
We still use two-thirds or more of our water in the lower basin for agriculture, and most of that is used for forage crops, like alfalfa, which feed livestock. So we very much need to restructure the agricultural sector in the lower basin and think about prioritization of certain types of agriculture in certain locations. And importantly, we need to work with agricultural communities, with landowners and businesses, to help them transition to a future that recognizes there’s less water available. And, you know, this is the challenge that we face: How do we make an intentional, thoughtful, supportive transition to a new, more efficient, and more appropriate type of agriculture in the West?
This region is in an amazing region to grow alfalfa if you have water. And so, there’s lots of rational choices that were made along the way. But in an era of significantly reduced water availability, it is simply not sustainable for us to continue to use that much of our available water for agriculture, and in particular for forage crops mostly to support cattle. And so this has to change.
I fully recognize, though, that these are private property rights, and there needs to be a process for this. We can’t just simply have a situation like what we saw in the Midwest where we just move all of our manufacturing overseas and abandon entire swaths of the country. We have to think about how we can help, whether it’s through compensation, community planning, capacity building, job transitions, etc. But that’s the biggest part of the solution. We need to be very thoughtful about that.
I think one of the key things we really need to get into the planning process [for 2026] is greater adaptability and greater flexibility so we’re able to respond to changing conditions. Under the current guidelines there is a priority rights process where we would have [hypothetically] seen the reduction of essentially all — 100% — of Arizona’s allocation of the Colorado River, before any of California’s rights were reduced. But it seems implausible to eliminate the Colorado River water supply to Phoenix, which is the fifth largest city in the country. These are the third rails of water politics. We have to rethink the way that these water allocation decisions are made, and we’ve got to be much more flexible, much more adaptable, and really think about how we can respond to climate and water conditions.
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The Supreme Court keeps changing the terms of the deal between the legislative branch and the executive.
The Supreme Court ended its 2025–2026 term today, issuing a flurry of rulings on its most controversial cases. Most significantly, it rejected President Trump’s attempt to overturn birthright citizenship, preserving the 14th Amendment as it has been read for more than a century. It also struck down restrictions on how much political parties can spend in coordination with candidates — a change that could shape political strategies in November’s midterm election.
But I suspect that the year’s most important ruling for energy and climate policy came … yesterday. In a 6-3 ruling, the court’s conservative majority allowed President Trump to fire the commissioners of independent agencies without cause. Although the case concerned the Federal Trade Commission, it will matter for every independent agency that governs energy and climate policy.
My colleague Matthew Zeitlin wrote about what the case will mean for the Federal Energy Regulatory Commission, for instance, and I urge you to read his story. As he writes, the agency that governs the country’s power markets, transmission grid, and natural gas infrastructure has a culture of bipartisan consensus, even comity, and the ruling could chill that warmer clime. Last year, a cross-partisan group of 11 former FERC officials warned that allowing the president to fire commissioners “would bulldoze the structural supports that Congress built into” the agency to protect its power “from abuse.”
But FERC is not the only commission that governs climate and energy policy. The Nuclear Regulatory Commission — which Trump has also sought to bring to heel — is led by independent commissioners. So too are the Securities and Exchange Commission and the Commodity Futures Trading Commission, which the Biden administration tried (and largely failed) to turn into climate policy-making agencies.
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The independent commission is an old American legal structure, invented in the 19th century to manage issues where Congress deemed technical expertise and a deliberative process were essential to producing good policy. Although some guardrails for these agencies remain intact — such as requirements that a certain number of their commissioners come from each party — the court has permanently changed how they work. For instance, instead of having to wait for commissioners at FERC or the FTC to retire, step down, or serve out their terms, the president can now fire any or all of them and remake an independent commission almost as soon as they take office — assuming, at least, a cooperative Senate that is willing to confirm new appointees.
While reading about the ruling, I’ve found myself thinking back to an article written last year by the Georgetown Law professor Josh Chafetz. It concerns a little-known (or at least new to me) 1983 Supreme Court case, INS v. Chadha, that reshaped the relationship between Congress and the executive branch. For decades, Congress passed laws granting new powers to the president (or a federal agency) while retaining the ability to nullify those powers with a “legislative veto,” whereby one or both houses of Congress could cancel a given action with a simple majority vote.
In Chadha, the court ruled that the legislative veto was unconstitutional, a decision that affected hundreds of statutes, according to Chafetz. But crucially, the court did not cancel Congress’ grants of authority in those statutes; it only removed Congress’ ability to veto the use of that authority by a vote. In doing so, it ratcheted up the executive branch’s powers and diminished the legislative’s — “thereby leaving in place only one side of a bargain between Congress and the presidency,” Chafetz writes.
Why does this matter? Because the court is doing something similar again. Congress struck a bargain with the president when it set up commissions like FERC and the NRC: It granted new powers to the executive branch, but also placed important restrictions on how those powers can be used. In allowing the president to fire commissioners, the Supreme Court has altered the deal, preserving Congress’ grant of authority while removing any real restrictions on the president’s ability to use that authority. In doing so, it has overhauled how those agencies work, essentially creating a new and more potent version of FERC, or the NRC, or the FTC that wears the staff and authorities of the old one as a skin suit.
No legislator would have chosen to set up FERC, or the NRC, or the FTC as they now exist. But after the Supreme Court’s partial demo job yesterday, they are the agencies we have. The court has overhauled how the United States regulates electricity markets, or antitrust law, or nuclear safety regulation. Let’s pray, I suppose, that the Supreme Court doesn’t alter the deal any further.
I promised I wouldn’t write about Europe’s air conditioning adoption today, and I have kept my vow. But my colleague Jeva Lange — who just returned from a 10-day trip on the continent with her husband, her 9-month-old daughter, and her 69-year-old father — has written about it, and in the most delightful way. What was Europe actually like, as an (ew) American? Find out.
I decided to go to Italy in June with my husband, my 9-month-old daughter, and my 69-year-old father. What could go wrong?
The start of a vacation really begins 10 days before departure, when your arrival date first appears on your weather app. Like the turning over of a tarot card, it is this initial forecast that hints at the potential character of your trip — whether your beach vacation might be ruined by rain, or if spring break will fall this year during an unanticipated cold spell.
For our recent trip to Bologna, Italy, my family and I seemed to have pulled one of the worst cards in the deck: Our weather apps suggested early on that the high would be near 100 degrees Fahrenheit on the weekend of our arrival.
Little did we know then, it would never cool down.
Coming on the heels of Europe’s second-hottest May on record, an extreme heat wave settled over the continent on June 18, 2026 — the first day of our trip — and lasted through Sunday, June 29 — the day we returned home. This would, on its face, seem to be a case of abysmal luck. But as someone who writes about extreme heat, it felt more like the moment I went from covering the story to living it myself, a jarring but not uncommon experience among my professional colleagues. As is often the case on the climate beat, it is only a matter of time before we become the subjects of our own stories.
To be sure, I’ve been hot in Europe before. Last year, I was also in Bologna during a heat wave, when the city set a record for the highest minimum temperature in June. At that time, I was pregnant and attending the Il Cinema Ritrovato film festival with my husband, a movie critic. Despite the wimpy European AC running in the theaters — and the nonexistent AC in many of the city’s best restaurants — we had such a good time that we pledged to make our attendance an annual family tradition. Next year, we decided then, we’d return with the baby.
Ah, the naïveté of parents to-be!
Our itinerary took us from Seattle to Paris for a one-night stopover before we would carry on to Bologna. On our arrival day, June 18, Paris hit 97 degrees Fahrenheit. Determined to try to see as much of the new-to-us city as we could, we stuck the baby in a backpack and raced from our air-conditioned room to another AC oasis, the Musée d’Orsay — a walk of about half an hour that took us along the sun-blasted east end of the Tuileries and over the exposed Pont Royal. By the time we reached the long line of wilting tourists waiting to enter the museum, our daughter had slumped, lethargic, in her carrier. Beside ourselves with panic, we pushed our way into the museum’s lightly air-conditioned ticketing office. I was calculating the fastest way to get medical help — yell for security and hope the museum had paramedics on hand? Dial the local emergency number? — when, after what felt like a terrifyingly long time, she opened her eyes and cried.
I’ve replayed that walk over and over in my head, wondering where we went wrong. Unfortunately, it is difficult to get good medical information about babies and heat. Infants’ warning signs are contradictory — sweat is a red flag, but so is not sweating; increased irritability should be watched for, but so should lethargy — and an individual’s acclimation and compounding conditions like hydration and airflow make it even harder to know when a temperature is safe, or isn’t. Did the sweltering ride into the city on an overcrowded RER mean our daughter was already under heat stress when we left again for our walk? Was it just jet lag compounding her lethargy? Was it the heat transfer from being in a carrier that was at fault, or all that direct sun on the Seine?
Whatever the cause, we arrived in Bologna on edge. In addition to our daughter, I was worried about the other most vulnerable member of our small party: my dad, a senior, who joined us a few days later. Having reported on the 2021 Pacific Northwest heat dome deaths and knowing the cardiac stressor of dehydration, especially on older adults, I was extra obnoxious about making sure everyone carried a water bottle and ensured that the apartment we rented (which I’d made extra sure came with air conditioning) stayed at an “American-style” temperature of “wrap yourself in a blanket indoors.” (I admit to having the weak American mind disease when it comes to using AC, although I was fascinated by the story a Belgian friend told about the social stigma against installing AC in his country because it’s perceived as making the conditions hotter for one’s neighbors.)
Still, meals out couldn’t be avoided, and while many restaurants seemed to have added air conditioning since our trip last year, Bologna is still an eat-on-the-street kind of city. Breakfast was tolerable; leaving for lunch and dinner, though, felt like having a tennis racket of heat swung directly at your face as soon as you stepped outside. The city’s famous porticoes, a “historical form of climactic refuge” designed to provide passive cooling in the form of shade and airflow, offered marginal relief. But even the clever medieval architecture couldn’t compete with the fossil fuel emissions-worsened heat; after the sun went down around 9 p.m., the heat would linger, radiating out of the masonry. The thermometer I hung from the stroller frequently read over 90 degrees Fahrenheit even as late as 11 p.m. To keep the baby cool, we tucked ice packs wrapped in burp cloths alongside her in the stroller, misted her with fans, and covered her legs in a Frogg Toggs evaporative cooling towel that we’d rewet in the city’s public water fountains.
During our 10 days in Italy, the daytime high never dropped below 95 degrees, and my dad and the baby spent almost their entire vacation indoors — either at the apartment or at the wonderful Biblioteca Salaborsa, a library and one of Bologna’s community cooling centers. It was from my colleague Robinson Meyer that I later learned more than half of Italian households now have air conditioning, although adoption has grown faster in the south than in the north, where we were. That’s a pattern that extends across Europe; about “28% of French homes and 13% of apartments have some kind of air conditioning,” Rob further writes.
But while excess mortality takes a long time to calculate accurately, France already reports that more than 1,300 people have died due to the heat since June 21, 2026. Most of the casualties are among people over the age of 65, as is usually the case during heat waves, but small children are also among the dead.
There isn’t a tidy ending to this story. We were hot, we lived, and we went home. I have almost no pictures of my child on her first international vacation because she spent practically all of it indoors, but that is hardly a tragedy. And — as I kept reminding myself when my intrusive thoughts and mom guilt became overwhelming — there are millions of parents raising millions of children in parts of the world that are very, very hot. What we accomplished, while inconvenient, was nothing extraordinary; in the coming years, it will probably become even more banal. (Indeed, it was about 10 degrees hotter in parts of France during this heat wave than anything we endured in Bologna.)
But let’s go back to that excess mortality number for just a moment. In 2022, a summer likely to be cooler than the six-day-old El Niño-fueled one now beginning in Europe, the World Health Organization calculated that more than 61,000 people died on the continent due to extreme heat stress. That’s 61,000 people with daughters and sons who also harangued them about remembering to drink water or stay out of the sun; 61,000 people who now won’t see their grandchildren start school, who won’t attend another family meal, who won’t take another vacation. While I spent 10 days worrying about how to keep the people I care about safe from extreme heat, it’s all but certain someone else — many someone elses — lost the ones they love in those same temperatures.
On the night before our departure for Paris, when our whole weather app had filled up with 97, 98, and 101 degree days stretching into the foreseeable future, my husband and I asked each other if we still wanted to go and be in that kind of heat. What a privilege it is, for now, to have been able to decide.
Republican Mike Braun loves data centers but hates electricity price increases.
Elected officials — especially in executive positions like governor, mayor, or, say, president — tend to support economic development writ large, looking to bring jobs to their constituents and expand the tax base. By that same token, they also tend to be quite sensitive to rising costs — especially utility bills, for which voters tend to hold state governments accountable, per Heatmap polling.
That puts governors — especially Republican governors, who are often more friendly to business and more likely to buy into arguments proffered by the White House about national security and economic competitiveness — in a tricky position as both the data center buildout and opposition to it gain momentum across the United States. No one embodies the dilemma more than Indiana’s Governor Mike Braun, who has positioned himself as a champion of data centers while also going on the rhetorical warpath against the utility AES Indiana and the Indiana Utility Regulatory Commission.
His latest barrage against Indiana’s electricity ratemaking process started in mid-June, when the utility commission approved a rate case from AES Indiana granting the utility a $71 million revenue increase across two phases, the first beginning in July, each of which will raise monthly bills by “less than $5 per month,” according to the company. AES had originally asked for a $190 million increase, but thanks in part to intervention from Indiana’s Office of Utility Consumer Counselor, a public advocate in utility rate hearings, it was eventually whittled down.
The utility commission handed down its decision on June 17. Later that same day, Braun issued a blast against AES and the IURC, saying in a statement that “my top priority is affordability, which is why I am deeply disappointed by the IURC’s approval of another AES rate increase. Hoosiers have spent years tightening their belts and making tough financial decisions. It’s time for utility companies to do the same.” The next day he was back with another fire-breathing statement: “Yesterday’s decision by the IURC to allow another rate increase by AES is unacceptable,” he said, and called for a rehearing of the rate case.
The regulator is in the midst of an “investigative inquiry on energy affordability” launched earlier this year that has required the state’s five large investor-owned utilities to make presentations on their ratemaking. “We’ve heard the concerns about the burden utility bills have on families and businesses across the state, and we are committed to evaluating short- and long-term solutions related to affordability,” then-Chair Andy Zay said in a news release in February announcing the investigation.
Braun, apparently, wasn’t convinced. By Monday, June 22, he’d removed Andy Zay as chairman of the IURC, and installed Commissioner Anthony Swinger to lead the regulator. “Affordability is my top priority,” he reiterated in a post on X, “and I am confident Chairman Swinger will deliver on that priority for Hoosiers.”
When asked about this past month’s events, AES Indiana said that it “respects the independence of the regulatory process and works constructively with all stakeholders. We remain focused on executing under the final approved order and delivering for our customers,” a spokesperson told me. Neither Braun’s office nor the IURC responded to my requests for comment.
The rhetoric was not particularly new for Braun. Last fall, for instance, he declared of utility rate hikes, “we can’t take it anymore,” and ordered the state’s utility consumer advocate “to evaluate utilities’ profits and find cost-saving measures to ease the financial burden on Hoosiers.” That said, his swift actions of late surprised some outside observers. “While Gov. Braun has made utility affordability a priority, the abrupt leadership change at the IURC is nonetheless surprising,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients. “We perceive a cautionary tone for Indiana regulation; future orders will likely be more visibly defensible on affordability.”
Indiana sits at the transmission-rich crossroads between the Midwest and East Coast and has long been governed by business-friendly Republicans, and has thus become a locus of data center construction — and backlash. Twenty-one out of 92 counties in the state have enacted some sort of pause or ban on data center construction, according to Heatmap Pro data. Earlier this year, the Indianapolis City Council passed a resolution calling for a pause on approvals for data centers. When the White House earlier this year got large technology companies to commit to the Ratepayer Protection Pledge, in which they agreed to fund any additional grid costs incurred by their data centers, it was arguably following in the footsteps of Indiana, which negotiated a large load tariff last year meant to shield customers of Indiana Michigan Power, a subsidiary of AEP, from data center-related costs.
Braun’s position in Indiana also mirrors the ideological divide in Washington — Braun supports data center development while demanding that utilities figure out a way to spare ratepayers. Advocates to his left, both at the state and federal level, support a pause on all data center construction. André Carson, one of two Democrats representing Indiana in the House of Representatives, introduced a bill that would enact a nationwide data center moratorium alongside Alexandra Ocasio-Cortez and Bernie Sanders. (For what it’s worth, most Americans seem to prefer the leftward road.)
Indiana’s typical household electricity bills have indeed risen in the past couple of years, from about $113 per month two years ago to $120 per month as of May, while prices have risen 19%, according to Heatmap and MIT’s Electricity Price Hub. Prices are up 12% in the past year, according to the Heatmap-MIT data, while the electricity prices nationwide have risen 6%.
Attributing rate hikes to data centers is a notoriously tricky exercise, however, and researchers have generally found that in most states, it’s hard to discern an exact connection. When pressed, Indiana utilities have claimed that higher prices are necessary to fund improvements for reliability or cold weather. Some critics of Indiana utilities, like Citizens Action Coalition Ben Inskeep, attribute years of rate hikes to coziness between the state legislature and utilities and the gradual weakening of regulators who could push back against hikes. Citizens Action has called for a moratorium on data centers in the state.
In spite of his harsh words against utilities, Braun has generally supported data centers as part of an overall economic development strategy, appearing at the groundbreaking for a $10 billion Meta data center project in Lebanon, Indiana, earlier this year. “In Indiana, it’s clear we’re a very easy state to do business in, but the communities are going to have to approve it,” he said on Fox Business earlier this month, setting himself up as a champion of local communities and ratepayers. “In Indiana, if you’re coming in, you’re paying for all of the construction and the generation of electricity, and you’re going to put more electrons onto the grid, taking prices down,” he said.
Braun’s consumer-and-conservation-minded critics have taken aim at this exact claim in pushing for a pause on development.
“We are one of the three or four Ground Zero states for data center development. We’re extremely attractive to data centers,” Kerwin Olson, executive director of Citizens Action Coalition, told me. “That happened at the same time as bills skyrocketing.”
Olson pointed out that Indiana’s data center boom has come at the tail end of a series of controversial economic developments, including a proposed hydrogen hub, carbon capture and storage projects, and a proposed water pipeline. “Here comes Amazon, here comes Meta, Google, and all hell just broke loose,” Olson said.
Referring to Braun, Olson said, “We don’t doubt his sincerity about his concern about affordability. We disagree with him on these solutions that need to happen.”